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									                               Financing
                             Environmental
                                Exports

                             “Sharing Risk, Opening
EXPORT-IMPORT BANK        Opportunities: Ex-Im Bank’s
 of the UNITED STATES
                        Environmental Exports Program”
    Jobs Through               September 29, 2005
      Exports

                                  Craig O’Connor
                            Director – Environmental Exports
                                 Business Development
Overview

 Introduction to Ex-Im Bank
 Ex-Im Bank’s Environmental Exports Program
 Industry/Market Analysis
 Ex-Im Products
 Conclusion
Ex-Im Bank Introduction
Independent agency of the U.S. government.
Established in 1934 to finance the export sales of goods and
services produced in the U.S.
     Since 1934 - supported over $450 billion in exports.
Supports short, medium, and long-term financing to credit worthy
international customers both public- and private-sector; working
capital guarantees to U.S. exporters.
Products include Direct Loans, Guarantees, Export Credit
Insurance, Working Capital Guarantees, Tied Aid Fund
No minimum nor maximum project size.
Special initiatives for environmental exports, small business, and
lending directly to municipalities.
Ex-Im Bank provides Loan Guarantees for Euros, other currencies
Environmental Exports Program
           Support for environmentally-beneficial exports included in our Charter.


      Environmental Exports Program Consists of pro-active business development and
                     enhancements to existing Ex-Im Bank programs.
                      Director Conlin formed new Environmental Exports Team


                     Environmental projects are offered enhancements:
       Maximum OECD repayment term for Long-Term Loans and Guarantees of 10-15
        years after project completion.
       Capitalization of interest during construction.
       Up to 15% local cost support within the U.S. scope of supply.
       Repayment terms of 15-years allowed OECD as of July 1, 2005!
          PEFCO funding available for extended loan terms
       Use of structured finance approach to support smaller projects


              RESULTS: Transactions approved under the Program grew from
                    13 in FY 1994, to 71 FY 2004, totaling over $2 billion.
Qualifying Renewable Energy
Sectors
 Special Terms approved by the OECD for 2-year trial period include:
                            RENEWABLE ENERGY
  Wind energy
  Geothermal energy
  Solar photovoltaic power
  Solar thermal energy
  Tidal and tidal steam power; wave power; ocean thermal energy
  Bio-energy: sustainable biomass, landfill gas, sewage plant gas, biogas.
  Hydropower – subject to further OECD discussions Nov. 2005
  WATER SUPPLY & TREATMENT:
  Projects related to the supply of water for human use and wastewater
   treatment facilities; collection and treatment of household and industrial
   wastewater and sewage, including water recycling and treatment of sludge
US Environmental Industry Trade Balance 2003
(in $billions) Source: Environmental Business International, Inc.




                                   US Ind US Mkt Surplus Exports Im ports %Export
   Equipment
   Water Equipm ent & Chem icals     21.4    18.3    3.1    7.28     4.2     34%
   Air Pollution Control             19.1    19.2   -0.1    2.86     3.0     15%
   Instruments & Info. Systems        4.1     2.5    1.5    1.83     0.3     45%
   Waste Mgmt Equipment               9.2     8.9    0.3    1.75     1.5     19%
   Process & Prevention Tech.         1.4     1.5   -0.1    0.07     0.2      5%
   Services
   Solid Waste Management            42.9    44.2   -1.3    0.21     1.5       1%
   Hazardous Waste Mgmt               8.5     8.5    0.0    0.15     0.2       2%
   Consulting & Engineering          19.5    17.7    1.8    2.48     0.7     13%
   Rem ediation/Industrial Svcs.     10.4    10.3    0.1    0.41     0.4       4%
   Analytical Services                1.8     1.7    0.1    0.12     0.0       7%
   Water Treatm ent Works            31.3    33.8   -2.5    0.22     2.7     0.7%
   Resources
   Water Utilities                   32.7    35.8   -3.1    0.10     3.2     0.3%
   Resource Recovery                 16.7    12.4    4.3    4.80     0.5     29%
   Clean Energy Systems & Power      12.7    13.9   -1.2    2.42     3.6     19%
   Total                            231.5   228.7    2.9    24.7    21.9    10.7%
Renewable Energy Market Overview
  Value of world‟s power generated from renewable energy estimated at $7 billion, up
               from $1 billion in 1990; projections for $82 billion by 2010.


        Renewable energy exports grew from $758MM in ‟02 to $1.04 billion in „04
                                  Leading Export Sectors:
  Since 1998, wind energy fastest growing new source of electricity; 30% average per
                      year growth, total market now at $4 billion.
     Danish turbines account for 60% of current U.S. capacity, U.S. firms have 30% small
      wind market share.
     Top 5 markets: Germany, Spain, U.S., Denmark, India


                    Solar photovoltaics total market now at $2.5 billion.
     Cost of solar power fell 65% from 1990 to 2000, to 40 cents/kw; est. that cost will
      fall to 10 cents/kw by 2010.
     In 1996, U.S. the world leader in photovoltaics with 40% global market share, Japan
      now world’s leader with 45%.
     U.S. exports 60% of its total production
     Top markets for U.S. exports: Germany (50%), Hong Kong, Spain, Japan, Mexico
Ex-Im Bank Financing Products


 A wide variety of products to meet a diverse range of
                   environmental deals
 pre-export finance – working capital guarantee program
            short term financing – insurance
  medium term financing – insurance & loan guarantees
         long term financing – loan guarantees
Insurance Policies
 Short-Term (Payments up to 180 days, exceptionally 360 days)
    Multi-buyer

    Single-buyer

    Small Business Multi-Buyer Policies:

       New-To-Export, Environmental

                                    Bank
      Letter of Credit
      Financial Institution Buyer Credit
      Financial Institution Supplier Credit

                                  Leasing
      Operating
      Financing

    Medium-Term (1-5 year payments, exceptionally 7 years)
    Single buyer
Southwest Windpower, Inc.
 Southwest Windpower, Inc., a small business in Flagstaff, Arizona
   that exports battery-charging wind turbines to more than 50
                            countries.


 Southwest Windpower generates more than 50% of its revenues
                     from export sales.


 Challenge: Southwest Windpower needs to offer credit terms to a
      number of small distributors in diverse foreign markets.


 Solution: Ex-Im Bank‟s Environmental Small Business Multi-buyer
  Credit Insurance enables Southwest Windpower to offer “open
 account” credit terms to its distributors that enables them to place
      larger orders, and in turn offer credit to local customers.


   Southwest Windpower turbines likely qualify for longer terms
Loan Guarantee Program
Guaranteed Loans made by commercial banks (U.S. or foreign) to a foreign
  buyer with a 100% unconditional repayment guarantee from Ex-Im Bank


   Guarantee covers 85% of the U.S. content of the transaction.


   Negotiated interest rates, usually a floating rate based on spread over 6-
    month U.S. dollar LIBOR rate


   Loan fully transferable, can be securitized


   Banks often finance the 15% required cash payment


   Guarantee available in Euros, other currencies
Working Capital Guarantee
   Ex-Im Bank provides 90-100% repayment Guarantee for working capital
 loans, revolving or transaction based, made by commercial lenders to small
                       businesses to finance export sales.


 The Working Capital Guarantee serves as the collateral to the commercial
 lender by mitigating the risk inherent when the source of repayment for the
                         loan is an overseas contract.


   Enables exporters to finance materials, labor, and overhead to produce
                          goods/services for export.


 Enables exporters to cover standby letters of credit for bid and performance
                       bonds, or payment guarantees.


         Enables the exporters to finance foreign sales receivables.


 Most Working Capital Guarantees provided by Delegated Authority Lenders
                    without prior Ex-Im Bank approval.
Case Study: PowerLight Corp.
  PowerLight of Berkeley, CA received a $5 million working capital loan made
     possible through Ex-Im Bank‟s Working Capital Guarantee Program
                                 (“WCGP”).


   PowerLight is using the working capital line of to finance the $50+ million
   export sale of solar tracking technology to Bavaria Solarpark, the world's
                           largest solar electric project!


    The project will generate 10 megawatts of electricity, enough to power
   9,000 homes in the region, supported by a 20-year power purchase from
                          the German government. .


      Union Bank of California, an Ex-Im Bank delegated authority lender,
  provided the loan and will receive Ex-Im Bank's Guarantee when the loan is
                                   processed.


       PowerLight is using the working capital line in part to post a 10%
              performance bond as required by Bavaria Solar.
Conclusion

      We have the right product to meet your export needs
                  Ex-Im can finance any size deal
 Focused on increasing environmental exports – using resources
                       throughout the bank
                   New 15 year terms
 Ex-Im Bank supports short, medium, and long-term financing to
      creditworthy international customers, and working capital
                    guarantees to U.S. exporters.
Ex-Im Bank is focused on increasing its support for environmental
                             exports.
  New 15-year repayment terms offer a strong enhancement for
        renewable energy and water technologies exports.
                           BRING US A DEAL!
                Internet        http://www.exim.gov
                 e-mail craig.oconnor@exim.gov

								
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